System and method for decentralized regulation and hierarchical control of blockchain architecture

ABSTRACT

Embodiments of the invention are directed to a decentralized block chain regulation architecture. The invention utilizes the collective nature of block chain communication to perform key regulatory and control functions. Instead of relying on a centralized regulatory source, the present system allows the block chain structures themselves to simultaneously function as both regulated and regulatory chains for one another to form an interconnected network of decentralized, regulatory chains. Further, the system allows for control of non-compliant block chains, wherein regulatory chains may issue commands to the non-compliant chains, rewrite data, overwrite an incorrect consensus, or deactivate a chain and remove it from a block chain environment before propagation of an error.

CROSS-REFERENCE TO RELATED APPLICATION

This application is a continuation of U.S. patent application Ser. No.16/553,269, filed Aug. 28, 2019, entitled “System and Method forDecentralized Regulation and Hierarchical Control of BlockchainArchitecture,” which in turn is a continuation filing of U.S. patentapplication Ser. No. 15/889,016 filed Feb. 5, 2018, entitled “System andMethod for Decentralized Regulation and Hierarchical Control ofBlockchain Architecture,” the contents of which are hereby incorporatedby reference.

BACKGROUND

Block chain is a growing, highly-adaptive new technology already beingimplemented across multiple industries. Due to the uniquecharacteristics inherent to the block chain structure, the regulation ofblock chains presents unique challenges with regards to scalability,processing speed, and data security. As a result, there exists a needfor a new block chain regulatory architecture that overcomes thechallenges of the conventional regulatory methods.

BRIEF SUMMARY

The following presents a simplified summary of one or more embodimentsof the invention in order to provide a basic understanding of suchembodiments. This summary is not an extensive overview of allcontemplated embodiments, and is intended to neither identify key orcritical elements of all embodiments, nor delineate the scope of any orall embodiments. Its sole purpose is to present some concepts of one ormore embodiments in a simplified form as a prelude to the more detaileddescription that is presented later.

Embodiments of the present invention address these and/or other needs byproviding an innovative system, method and computer program product forimplementing a decentralized block chain regulation architecture. Theinvention comprises: generating at least one regulatory hyperchain,wherein the at least one regulatory hyperchain collectively regulatesone or more of data, processes, and health of at least one regulatedchain based on requirements of the at least one regulated chain;assigning permission, upon authentication, for access and modificationof data within the at least one regulated chain via the at least oneregulatory hyperchain; collecting and analyzing a portion of data fromthe at least one regulated chain with the at least one regulatoryhyperchain; based on analyzing the portion of regulatory data,determining a modification action for the at least one regulated chain;and triggering execution of the modification action on the at least oneregulated chain.

In some embodiments, the invention further comprises assigning at leastone smart contract configured to dynamically control a transfer ofactions between the at least one regulated chain and the at least oneregulatory hyperchain based on the permissions.

In some embodiments, the invention further comprises a recursivehierarchy of self-regulating interconnected hyperchains, wherein each ofthe plurality of block chains participate within the recursive hierarchyas both a regulated chain and a regulating chain for one another. Insome embodiments, the recursive hierarchy of self-regulatinginterconnected hyperchains report to a central regulatory authoritypermissioned for performing modification actions for the at least oneregulated chain.

In some embodiments, the invention further comprises broadcasting theportion of regulatory data from the at least one regulated chain to theat least one regulatory hyperchain further comprises and transformingthe regulatory data prior to broadcasting the regulatory data to the atleast one regulatory hyperchain.

In some embodiments, the modification action comprises at least one ofproviding an operation command to the at least one regulated chain,rewriting information on the at least one regulated chain, overwriting aconsensus of the at least one regulated chain, and deactivating orremoving at least a portion of the at least one regulated chain from theblock chain network.

In some embodiments, the invention further comprises transmitting, viathe at least one regulatory node, a report from each of the at least oneregulatory hyperchain to a central regulatory authority.

The features, functions, and advantages that have been discussed may beachieved independently in various embodiments of the present inventionor may be combined with yet other embodiments, further details of whichcan be seen with reference to the following description and drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

Having thus described embodiments of the invention in general terms,reference will now be made to the accompanying drawings, wherein:

FIG. 1 provides a block chain regulation system environment, inaccordance with one embodiment of the invention;

FIG. 2 provides a block diagram of a user device, in accordance with oneembodiment of the invention;

FIG. 3 provides a block diagram of the block chain distributed networksystem, in accordance with one embodiment of the invention;

FIG. 4A provides a centralized database architecture environment, inaccordance with one embodiment of the invention;

FIG. 4B provides a high level block chain system environmentarchitecture, in accordance with one embodiment of the invention;

FIG. 5 provides a high level process flow illustrating node interactionwithin a block chain system environment architecture, in accordance withone embodiment of the invention;

FIG. 6 provides a block diagram for illustrating a hierarchical blockchain regulatory architecture, in accordance with one embodiment of theinvention;

FIG. 7A provides a high level process map illustrating implementation ofa decentralized block chain regulation architecture from the perspectiveof one or more regulating chains, in accordance with one embodiment ofthe invention;

FIG. 7B provides a detailed flow chart illustrating implementation of adecentralized block chain regulation architecture from the perspectiveof one or more regulating chains, in accordance with one embodiment ofthe invention;

FIG. 7C provides a detailed flow chart illustrating implementation of adecentralized block chain regulation architecture from the perspectiveof one or more regulating chains, in accordance with one embodiment ofthe invention;

FIG. 8A provides a high level process map illustrating implementation ofa decentralized block chain regulation architecture from the perspectiveof one or more regulated chains 800, in accordance with one embodimentof the invention; and

FIG. 8B provides a detailed flow chart illustrating implementation of adecentralized block chain regulation architecture from the perspectiveof one or more regulated chains 800, in accordance with one embodimentof the invention.

DETAILED DESCRIPTION OF EMBODIMENTS OF THE INVENTION

Embodiments of the present invention will now be described more fullyhereinafter with reference to the accompanying drawings, in which some,but not all, embodiments of the invention are shown. Indeed, theinvention may be embodied in many different forms and should not beconstrued as limited to the embodiments set forth herein; rather, theseembodiments are provided so that this disclosure will satisfy applicablelegal requirements. Like numbers refer to elements throughout. Wherepossible, any terms expressed in the singular form herein are meant toalso include the plural form and vice versa, unless explicitly statedotherwise. Also, as used herein, the term “a” and/or “an” shall mean“one or more,” even though the phrase “one or more” is also used herein.Furthermore, when it is said herein that something is “based on”something else, it may be based on one or more other things as well. Inother words, unless expressly indicated otherwise, as used herein “basedon” means “based at least in part on” or “based at least partially on.”

Furthermore, as used herein the term “user device” may refer to anydevice that employs a processor and memory and can perform computingfunctions, such as a personal computer or a mobile device, wherein amobile device is any mobile communication device, such as a cellulartelecommunications device (i.e., a cell phone or mobile phone), personaldigital assistant (PDA), a mobile Internet accessing device, or othermobile device. Other types of mobile devices may include portabledigital assistants (PDAs), pagers, wearable devices, mobile televisions,laptop computers, cameras, video recorders, audio/video player, radio,global positioning system (GPS) devices, or any combination of theaforementioned. In some embodiments, a device may refer to an entity'scomputer system, platform, servers, databases, networked devices, or thelike. The device may be used by the user to access the system directlyor through an application, online portal, internet browser, virtualprivate network, or other connection channel. The device may be acomputer device within a network of connected computer devices thatshare one or more network storage locations.

As used herein, the term “computing resource” or “computing hardware”may be used to refer to elements of one or more computing devices,networks, or the like available to be used in the execution of tasks orprocesses. A computing resource may include processor, memory, ornetwork bandwidth and/or power used for the execution of tasks orprocesses. A computing resource may be used to refer to availableprocessing, memory, and/or network bandwidth and/or power of anindividual computing device as well a plurality of computing devicesthat may operate as a collective for the execution of one or more tasks(e.g., one or more computing devices operating in unison or nodes of adistributed computing cluster).

A “user” as used herein may refer to any entity or individual associatedwith the decentralized block chain regulation system. In someembodiments, a user may be a computing device user, a phone user, amobile device application user, a financial institution customer (e.g.,an account holder or a person who has an account (e.g., banking account,credit account, or the like)), a system operator, database manager, asupport technician, and/or employee of an entity. In some embodiments,identities of an individual may include online handles, usernames,identification numbers (e.g., Internet protocol (IP) addresses),aliases, family names, maiden names, nicknames, or the like. In someembodiments, the user may be an individual or an organization (i.e., acharity, business, company, governing body, or the like).

In accordance with embodiments of the invention, the term “entity” maybe used to include any organization or collection of users that mayinteract with decentralized block chain regulation system. An entity mayrefer to a business, company, or other organization that eithermaintains or operates the system or requests use and accesses thesystem. The terms “financial institution” and “financial entity” may beused to include any organization that processes financial transactionsincluding, but not limited to, banks, credit unions, savings and loanassociations, investment companies, stock brokerages, capital managementfirms, insurance companies and the like. In specific embodiments of theinvention, use of the term “bank” is limited to a financial entity inwhich account-bearing customers conduct financial transactions, such asaccount deposits, withdrawals, transfers and the like. In otherembodiments, an entity may be a business, organization, a governmentorganization or the like that is not a financial institution.

“Authentication information” is any information that can be used toidentify a user. For example, a system may prompt a user to enterauthentication information such as a username, a password, a personalidentification number (PIN), a passcode, biometric information (e.g.,voice authentication, a fingerprint, and/or a retina scan), an answer toa security question, a unique intrinsic user activity, such as making apredefined motion with a user device. This authentication informationmay be used to authenticate the identity of the user (e.g., determinethat the authentication information is associated with the account) anddetermine that the user has authority to access an account or system. Insome embodiments, the system may be owned or operated by an entity. Insuch embodiments, the entity may employ additional computer systems,such as authentication servers, to validate and certify resourcesinputted by the plurality of users within the system. The system mayfurther use its authentication servers to certify the identity of usersof the system, such that other users may verify the identity of thecertified users. In some embodiments, the entity may certify theidentity of the users. Furthermore, authentication information orpermission may be assigned to or required from a user, application,computing device, or the like to access, write, delete, copy, or modifydata within at least a portion of the system.

To “monitor” is to watch, observe, or check something for a specialpurpose over a period of time. The “monitoring” may occur periodicallyover the period of time, or the monitoring may occur continuously overthe period of time. In some embodiments, a system may actively monitor adatabase or data archive, wherein the system reaches out to the databaseand watches, observes, or checks the database for changes, updates, andthe like. In other embodiments, a system may passively monitor adatabase, wherein the database provides information to the system andthe system then watches, observes, or checks the provided information.In some embodiments a system, application, and/or module (such as therobotic process automation module and/or the entity platform describedherein) may monitor a user input into the system. In furtherembodiments, the system may store said user input during an interactionin order to substantially replicate said user input at another time.

As used herein, a “connection” or an “interaction” may refer to anycommunication between one or more users, one or more entities orinstitutions, and/or one or more devices, nodes, clusters, or systemswithin the system environment described herein. For example, aninteraction may refer to a transfer of data between systems or devices,an accessing of stored data by one or more devices, a transmission of arequested task, a reporting and correction of an error, or the like. Inanother example, an interaction may refer to a user interaction with auser device through a user interface in order to connect or communicatewith an entity and/or entity system to complete an operation (e.g.,request a transfer of funds from an account, complete a form, or thelike).

The terms “block chain,” “blockchain,” or “distributed ledger,” as usedherein, refer to a decentralized electronic ledger of data records whichare authenticated by a federated consensus protocol. Multiple computersystems within the block chain, referred to herein as “nodes” or“compute nodes,” each comprise a copy of the entire ledger of records.Nodes may write a data “block” to the block chain, the block comprisingdata regarding a transaction, said blocks further comprising data and/ormetadata. In some embodiments, only miner nodes may write transactionsto the block chain. In other embodiments, all nodes have the ability towrite to the block chain. In some embodiments, the block may furthercomprise a time stamp and a pointer to the previous block in the chain.In some embodiments, the block may further comprise metadata indicatingthe node that was the originator of the transaction. In this way, theentire record of transactions is not dependent on a single databasewhich may serve as a single point of failure; the block chain willpersist so long as the nodes on the block chain persist. A “privateblock chain” or “permissioned block chain” is a block chain in whichonly authorized nodes may access the block chain. In some embodiments,nodes must be authorized to write to the block chain. In someembodiments, nodes must also be authorized to read from the block chain.Once a transactional record is written to the block chain, it will beconsidered pending and awaiting authentication by the miner nodes in theblock chain.

A “block” as used herein may refer to one or more records of a file witheach record comprising data for transmission to a server. In someembodiments, the term record may be used interchangeably with the termblock to refer to one or more transactions or data within a file beingtransmitted. In particular, the block chain begins with a genesis blockand is subsequently lengthened by appending blocks in series to thegenesis block. Generally, the data within each block within the blockchain may not be modified by the nodes of the block chain; data may onlybe added through the addition of a block to the last block in the blockchain. Each block added to the block chain may comprise a timestamp anda pointer to the previous block in the block chain. In this way, theblock chain may provide an immutable record of data records over aperiod of time. In some embodiments, in order for a new block to beadded to the block chain, a pending data record may be proposed to beadded to the block chain. The nodes may then, via a “consensusalgorithm” or “consensus mechanism,” come to a consensus as to thecontents of the data in the block chain. Once a consensus has beenreached by the nodes that the pending data record is valid, the nodesappend the data record to the last block in the block chain. In thisway, each node maintains a validated copy of the block chain such thatthe block chain may remain accessible even if one or more nodes becomeunavailable (e.g. a node is offline due to maintenance, malfunction, orthe like) and may further account for divergence from the true copy ofthe block chain which may occur at the node level (e.g. a copy of theblock chain on a particular node becomes invalid due to data corruption,malicious editing, and the like). In other words, the consensusmechanism ensures that, over time, each node hosts a copy of the blockchain that is consistent with the other nodes.

Embodiments of the invention as described herein may utilize one,several, or a combination (i.e. hybrid) of a number of differentconsensus algorithms to ensure the integrity of the data within theblock chain. In some embodiments, the consensus mechanism may be a“proof of work” (“PoW”) algorithm, in which the nodes perform a seriesof calculations to solve a cryptographic puzzle. For instance, in orderto validate a pending data record, the nodes may be required tocalculate a hash via a hash algorithm (e.g. SHA256) which satisfiescertain conditions set by the system. Calculating a hash in this way maybe referred to herein as “mining,” and thus a node performing the miningmay be referred to as “miners” or “miner nodes.”

“Miner node” as used herein refers to a networked computer system ordevice that authenticates and verifies the integrity of pendingtransactions on the block chain. The miner node ensures that the sum ofthe outputs of the transaction within the block matches the sum of theinputs. In some embodiments, a pending transaction may requirevalidation by a threshold number of miner nodes. Once the thresholdnumber of miners has validated the transaction, the block becomes anauthenticated part of the block chain. By using this method ofvalidating transactions via a federated consensus mechanism, duplicateor erroneous transactions are prevented from becoming part of theaccepted block chain, thus reducing the likelihood of data recordtampering and increasing the security of the transactions within thesystem.

Embodiments of the invention provide a technical solution to a problemby utilizing block chain systems in a nonconventional way. Unlike a moretraditional centralized approach to block chain regulation, wherein oneor more regulatory nodes are added to each block chain to regulate eachchain with the nodes, the present invention implements a decentralizedblock chain regulation architecture by utilizing the collective natureof block chain communication to perform key regulatory and controlfunctions. Instead of relying on a centralized regulatory source, thepresent system allows the block chain structures themselves tosimultaneously function as both regulated and regulatory chains for oneanother to form an interconnected network of decentralized, regulatorychains.

The invention further provides a technical solution to problems inherentto the technology surrounding conventional, centralized regulation forblock chains, namely: issues of scalability, speed, and security. Due tothe nature of block chain growth, a centralized method of regulatorycontrol would inevitably become overwhelmed by increasingly long chainlengths leading to decreased performance and delays in reporting,analysis, and control of the block chain. Further, conventionalcentralized regulation provides a single point of potential compromisefor a hacking event or node failure which could seriously affect or evenirreparably damage the integrity of the chain's overall health. Theseconcerns are further enhanced when the block chains of the presentinvention comprise one or more permissioned block chains, wherein thereare few participants and a hacking event or other data error can createa significant impact on the health of the block chain.

Further, the system allows for control of non-compliant chains, whereinregulatory chains may issue commands to the non-compliant chains,rewrite data, overwrite an incorrect consensus, or deactivate a chainand remove it from a block chain environment entirely before propagationof an error may occur.

FIG. 1 provides a system that includes specialized systems and devicescommunicably linked across a distributive network of nodes required toperform the functions of implementing the decentralized block chainregulation architecture as described herein. FIG. 1 provides a blockchain regulation system environment 100, in accordance with oneembodiment of the present invention. As illustrated in FIG. 1, the blockchain distributed network system 130 is operatively coupled, via anetwork 101 to the user device 110, nodes 120, the financial institutionsystem 140, and the regulatory system 150. In this way, the block chaindistributed network system 130 can send information to and receiveinformation from the user device 110, nodes 120, financial institutionsystem 140, and the regulatory system 150. FIG. 1 illustrates only oneexample of an embodiment of the system environment 200, and it will beappreciated that in other embodiments one or more of the systems,devices, or servers may be combined into a single system, device, orserver, or be made up of multiple systems, devices, or servers.

The network 101 may be a system specific distributive network receivingand distributing specific network feeds and identifying specific networkassociated triggers. The network 101 may also be a global area network(GAN), such as the Internet, a wide area network (WAN), a local areanetwork (LAN), or any other type of network or combination of networks.The network 101 may provide for wireline, wireless, or a combinationwireline and wireless communication between devices on the network 101.

In some embodiments, the user 102 is an individual or system thatdesires to implement the decentralized block chain regulationarchitecture of the present invention over the network 101. In someembodiments a user 102 is a user or entity completing a transaction tobe recorded on a block chain. In other embodiments, the user 102 is auser or entity managing data storage on the block chain. In yet otherembodiments, the user 102 is an individual associated with a regulatoryentity or agency. In some embodiments, the user 102 has a user device110, such as a mobile phone, tablet, or the like that may interact withand control the recordation and validation of blocks on the block chainthrough interaction with the devices and systems of the environment 200.

It is understood that the servers, systems, and devices described hereinillustrate one embodiment of the invention. It is further understoodthat one or more of the servers, systems, and devices can be combined inother embodiments and still function in the same or similar way as theembodiments described herein.

FIG. 2 provides a block diagram of a user device 110, in accordance withone embodiment of the invention. The user device 110 may generallyinclude a processing device or processor 202 communicably coupled todevices such as, a memory device 234, user output devices 218 (forexample, a user display device 220, or a speaker 222), user inputdevices 214 (such as a microphone, keypad, touchpad, touch screen, andthe like), a communication device or network interface device 224, apower source 244, a clock or other timer 246, a visual capture devicesuch as a camera 216, a positioning system device 242, such as ageo-positioning system device like a GPS device, an accelerometer, andthe like, one or more chips, and the like. The processing device 202 mayfurther include a central processing unit 204, input/output (I/O) portcontrollers 206, a graphics controller or GPU 208, a serial buscontroller 210 and a memory and local bus controller 212.

The processing device 202 may include functionality to operate one ormore software programs or applications, which may be stored in thememory device 234. For example, the processing device 202 may be capableof operating applications such as the user application 238. The userapplication 238 may then allow the user device 110 to transmit andreceive data and instructions from the other devices and systems. Theuser device 110 comprises computer-readable instructions 236 and datastorage 240 stored in the memory device 234, which in one embodimentincludes the computer-readable instructions 236 of a user application238. In some embodiments, the user application 238 allows a user 102 toaccess and/or interact with content provided from an entity. In someembodiments, the user application 238 further includes a client formanaging block chain regulatory operations either manually or usingsmart contracts. The user application 238 may also allow the user toview and manipulate data and perform actions on the block chain asdescribed herein.

The processing device 202 may be configured to use the communicationdevice 224 to communicate with one or more other devices on a network101 such as, but not limited to the block chain distributed networksystem 130. In this regard, the communication device 224 may include anantenna 226 operatively coupled to a transmitter 228 and a receiver 230(together a “transceiver”), modem 232. The processing device 202 may beconfigured to provide signals to and receive signals from thetransmitter 228 and receiver 230, respectively. The signals may includesignaling information in accordance with the air interface standard ofthe applicable BLE standard, cellular system of the wireless telephonenetwork and the like, that may be part of the network 201. In thisregard, the user device 110 may be configured to operate with one ormore air interface standards, communication protocols, modulation types,and access types. By way of illustration, the user device 110 may beconfigured to operate in accordance with any of a number of first,second, third, and/or fourth-generation communication protocols and/orthe like. For example, the user device 110 may be configured to operatein accordance with second-generation (2G) wireless communicationprotocols IS-136 (time division multiple access (TDMA)), GSM (globalsystem for mobile communication), and/or IS-95 (code division multipleaccess (CDMA)), or with third-generation (3G) wireless communicationprotocols, such as Universal Mobile Telecommunications System (UMTS),CDMA2000, wideband CDMA (WCDMA) and/or time division-synchronous CDMA(TD-SCDMA), with fourth-generation (4G) wireless communicationprotocols, and/or the like. The user device 110 may also be configuredto operate in accordance with non-cellular communication mechanisms,such as via a wireless local area network (WLAN) or othercommunication/data networks. The user device 110 may also be configuredto operate in accordance Bluetooth® low energy, audio frequency,ultrasound frequency, or other communication/data networks.

The user device 110 may also include a memory buffer, cache memory ortemporary memory device operatively coupled to the processing device202. Typically, one or more applications 238, are loaded into thetemporarily memory during use. As used herein, memory may include anycomputer readable medium configured to store data, code, or otherinformation. The memory device 234 may include volatile memory, such asvolatile Random Access Memory (RAM) including a cache area for thetemporary storage of data. The memory device 234 may also includenon-volatile memory, which can be embedded and/or may be removable. Thenon-volatile memory may additionally or alternatively include anelectrically erasable programmable read-only memory (EEPROM), flashmemory or the like.

Though not shown in detail, the system further includes a financialinstitution system 140 (as illustrated in FIG. 1) which is connected tothe user device 110, the nodes 120, the block chain distributed networksystem 130, and the regulatory system 150 and may be associated with oneor more financial institutions or financial entities. In this way, whileonly one financial institution system 140 is illustrated in FIG. 1, itis understood that multiple network systems may make up the systemenvironment 100. The financial institution system 140 generallycomprises a communication device, a processing device, and a memorydevice. The financial institution system 140 comprises computer-readableinstructions stored in the memory device, which in one embodimentincludes the computer-readable instructions of a financial institutionapplication. The financial institution system 140 may communicate withthe user device 110, the nodes 120, the block chain distributed networksystem 130, and the regulatory system 150 to, for example, completetransactions on the block chain.

The nodes 120, and the regulatory system 150 comprise the same orsimilar features as the user device 110 and the financial institutionsystem 140. In some embodiments, the nodes 120 may be user devices 110forming a plurality of networked devices participating in a block chainenvironment. The regulatory system 150 is may be maintained by an entitysuch as a regulatory agency or financial entity for regulating data onthe block chain and ensuring data health and security through theprocesses described herein.

FIG. 3 provides a block diagram of the block chain distributed networksystem 130, in accordance with one embodiment of the invention. Theblock chain distributed network system 130 generally comprises acommunication device 302, a processing device 304, and a memory device306. As used herein, the term “processing device” generally includescircuitry used for implementing the communication and/or logic functionsof the particular system. For example, a processing device may include adigital signal processor device, a microprocessor device, and variousanalog-to-digital converters, digital-to-analog converters, and othersupport circuits and/or combinations of the foregoing. Control andsignal processing functions of the system are allocated between theseprocessing devices according to their respective capabilities. Theprocessing device may include functionality to operate one or moresoftware programs based on computer-readable instructions thereof, whichmay be stored in a memory device.

The processing device 306 is operatively coupled to the communicationdevice 302 and the memory device 306. The processing device 304 uses thecommunication device 302 to communicate with the network 101 and otherdevices on the network 101, such as, but not limited to the user device110, the nodes 120, the financial institution system 140, and theregulatory system 150. As such, the communication device 302 generallycomprises a modem, server, or other device for communicating with otherdevices on the network 101.

As further illustrated in FIG. 3, the block chain distributed networksystem 130 comprises computer-readable instructions 310 stored in thememory device 306, which in one embodiment includes thecomputer-readable instructions 310 of a block chain application 312. Insome embodiments, the memory device 306 includes data storage 308 forstoring data related to the system environment, but not limited to datacreated and/or used by the block chain application 312.

Embodiments of the block chain distributed network system 130 mayinclude multiple systems, servers, computers or the like maintained byone or many entities. FIG. 3 merely illustrates one of those systemsthat, typically, interacts with many other similar systems to form theblock chain. The block chain distributed network system 130 will beoutlined below in more detail with respect to FIGS. 4-6. In someembodiments, financial institution systems may be part of the blockchain. Similarly, in some embodiments, the block chain distributednetwork system 130 is part of a financial institution system 140. Inother embodiments, the financial institution system 140 is distinct fromthe block chain distributed network system 130. The block chaindistributed network system 130 may communicate with the financialinstitution system 140 via a secure connection generated for secureencrypted communications between the two systems.

In one embodiment of the block chain distributed network system 130 thememory device 306 stores, but is not limited to, a block chainapplication 312 and a distributed ledger 314. In some embodiments, thedistributed ledger 314 stores data including, but not limited to, atleast portions of a transaction record. In one embodiment of theinvention, both the block chain application 312 and the distributedledger 314 may associate with applications having computer-executableprogram code that instructs the processing device 304 to operate thenetwork communication device 302 to perform certain communicationfunctions involving described herein. In one embodiment, thecomputer-executable program code of an application associated with thedistributed ledger 314 and block chain application 312 may also instructthe processing device 304 to perform certain logic, data processing, anddata storing functions of the application.

The processing device 304 is configured to use the communication device302 to gather data, such as data corresponding to transactions, blocksor other updates to the distributed ledger 314 from various data sourcessuch as other block chain network system. The processing device 304stores the data that it receives in its copy of the distributed ledger314 stored in the memory device 306.

FIG. 4A illustrates a centralized database architecture environment 400,in accordance with one embodiment of the present invention. Thecentralized database architecture comprises multiple nodes from one ormore sources and converge into a centralized database. The system, inthis embodiment, may generate a single centralized ledger for datareceived from the various nodes. FIG. 4B provides a general block chainsystem environment architecture 450, in accordance with one embodimentof the present invention. Rather than utilizing a centralized databaseof data for instrument conversion, as discussed above in FIG. 4A,various embodiments of the invention may use a decentralized block chainconfiguration or architecture as shown in FIG. 4B.

A block chain is a distributed database that maintains a list of datablocks, such as real-time resource availability associated with one ormore accounts or the like, the security of which is enhanced by thedistributed nature of the block chain. A block chain typically includesseveral nodes, which may be one or more systems, machines, computers,databases, data stores or the like operably connected with one another.In some cases, each of the nodes or multiple nodes are maintained bydifferent entities. A block chain typically works without a centralrepository or single administrator. One well-known application of ablock chain is the public ledger of transactions for cryptocurrencies.The data blocks recorded in the block chain are enforcedcryptographically and stored on the nodes of the block chain.

A block chain provides numerous advantages over traditional databases. Alarge number of nodes of a block chain may reach a consensus regardingthe validity of a transaction contained on the transaction ledger. Assuch, the status of the instrument and the resources associatedtherewith can be validated and cleared by one participant.

The block chain system typically has two primary types of records. Thefirst type is the transaction type, which consists of the actual datastored in the block chain. The second type is the block type, which arerecords that confirm when and in what sequence certain transactionsbecame recorded as part of the block chain. Transactions are created byparticipants using the block chain in its normal course of business, forexample, when someone sends cryptocurrency to another person, and blocksare created by users known as “miners” who use specializedsoftware/equipment to create blocks. In some embodiments, the blockchain system is closed, as such the number of miners in the currentsystem are known and the system comprises primary sponsors that generateand create the new blocks of the system. As such, any block may beworked on by a primary sponsor. Users of the block chain createtransactions that are passed around to various nodes of the block chain.A “valid” transaction is one that can be validated based on a set ofrules that are defined by the particular system implementing the blockchain. For example, in the case of cryptocurrencies, a valid transactionis one that is digitally signed, spent from a valid digital wallet and,in some cases that meets other criteria.

As mentioned above and referring to FIG. 4B, a block chain system 450 istypically decentralized—meaning that a distributed ledger 452 (i.e., adecentralized ledger) is maintained on multiple nodes 458 of the blockchain 450. One node in the block chain may have a complete or partialcopy of the entire ledger or set of transactions and/or blocks on theblock chain. Transactions are initiated at a node of a block chain andcommunicated to the various nodes of the block chain. Any of the nodescan validate a transaction, add the transaction to its copy of the blockchain, and/or broadcast the transaction, its validation (in the form ofa block) and/or other data to other nodes. This other data may includetime-stamping, such as is used in cryptocurrency block chains. In someembodiments, the nodes 458 of the system might be financial institutionsthat function as gateways for other financial institutions. For example,a credit union might hold the account, but access the distributed systemthrough a sponsor node.

Various other specific-purpose implementations of block chains have beendeveloped. These include distributed domain name management,decentralized crowd-funding, synchronous/asynchronous communication,decentralized real-time ride sharing and even a general purposedeployment of decentralized applications.

FIG. 5 provides a high level process flow illustrating node interactionwithin a block chain system environment architecture 500, in accordancewith one embodiment of the present invention. As illustrated anddiscussed above, the block chain system may comprise at least one ormore nodes used to generate blocks. The nodes as discussed with respectto FIG. 5 may be the nodes 120 of the system environment 100 discussedin FIG. 1. In some embodiments, the channel node 504, payments node 506,monitor node 516 or the clearing node 508 may publish a pendingtransaction 510 to the block chain 502. At this stage, the transactionhas not yet been validated by the miner node(s) 512, and the other nodeswill delay executing their designated processes. The miner node 512 maybe configured to detect a pending transaction 510. Upon verifying theintegrity of the data in the pending transaction 510, the miner node 512validates the transaction and adds the data as a transactional record514, which is referred to as a block to the block chain 502. Once atransaction has been authenticated in this manner, the nodes willconsider the transactional record 514 to be valid and thereafter executetheir designated processes accordingly. The transactional record 514will provide information about the transaction processed and transmittedthrough and metadata coded therein for searchability of thetransactional record 514 within a distributed ledger.

In some embodiments, the system may comprise at least one additionalminer node 512. The system may require that pending transactions 510 bevalidated by a plurality of miner nodes 512 before becomingauthenticated blocks on the block chain. In some embodiments, thesystems may impose a minimum threshold number of miner nodes 512 needed.The minimum threshold may be selected to strike a balance between theneed for data integrity/accuracy (i.e., security/immutability) versusexpediency of processing. In this way, the efficiency of the computersystem resources may be maximized.

Furthermore, in some embodiments, a plurality of computer systems are inoperative networked communication with one another through a network.The network may be a system specific distributive network receiving anddistributing specific network feeds and identifying specific networkassociated triggers.

In some embodiments, the computer systems represent the nodes of theblock chain, such as the miner node or the like. In such an embodiment,each of the computer systems comprise the block chain, providing fordecentralized access to the block chain as well as the ability to use aconsensus mechanism to verify the integrity of the data therein. In someembodiments, an upstream system and a downstream system are furtheroperatively connected to the computer systems and each other through thenetwork. The upstream system further comprises a ledger and the blockchain. The downstream system further comprises the block chain and aninternal ledger, which in turn comprises a copy of the ledger.

In some embodiments, a copy of block chain may be stored on a durablestorage medium within the computer systems or the upstream system or thedownstream system. In some embodiments, the durable storage medium maybe RAM. In some embodiments, the durable storage medium may be a harddrive or flash drive within the system.

FIG. 6 provides a block diagram for illustrating a hierarchical blockchain regulatory architecture, in accordance with one embodiment of thepresent invention. The block chain structure 600 generally comprises aplurality of computing nodes participating on a plurality of blockchains. In the non-limiting, illustrated embodiment of FIG. 6, aregulated chain 602 or main chain or first chain is depicted having aplurality of regulating chains 604 or periphery chains or secondarychains surrounding the regulated chain 602. In some embodiments, theperiphery regulating chains 604 are external to and in communicationwith the regulated chain 602. It should be understood that in someembodiments, the block chain structure 600 of FIG. 6 may expand outwardin a continued plurality of block chains spanning billions or trillionsof chains, wherein any single block chain may be considered a regulatedblock chain surrounded by a plurality of regulatory or periphery chainsas described herein. It should further be understood that the regulatedchain 602 and plurality of regulating chains 604 shown in FIG. 6 as wellas any specific positioning, numbering, or structuring of said chainsare for illustrative purposes only and are used to present and explainthe concepts presented herein.

Data stored on the bock chain comprises content data and block chaindata. Content data is any data stored on the block chain during use ofthe block chain system. For example, content data may includetransactional data from a transaction added to the block chain. In someembodiments, content data may further include meta-data. Generally datastored on the block chain is typically heterogeneous and may beseparated into different tiers based on data criticality or privacyrequirements. The lowest tier of data comprises completely non-criticalor broad data that is available to the public which may include, forexample, any information discoverable through a basic web search. Next,non-public information (NPI) includes any information obtained about anindividual from a transaction such as account numbers, financialstatements (e.g., credit cards, loan payments, settlements, and thelike), insurance information, transactional data, bank data, or thelike. Personal identifying information (PII) or sensitive personalinformation (SPI) is information that can be used on its own or withother information to identify, contact, or locate a person or toidentify an individual in context. PII is of higher criticality and moreclosely regulated than NPI. Examples of PII include social securitynumber, date of birth, home address, home telephone number, driver'slicense number, biometric data (e.g., fingerprint, retinal scan, and thelike). Finally, highly critical data may refer to data that exceeds theprivacy/security requirements of the previous categories. Examples ofhighly critical data may include trade secrets, classified information,defense strategies, and the like. While only four tiers of datacriticality are described herein, in some embodiments, data may befurther categorized or tiered based on one or more characteristics suchas privacy level. It should be understood that data stored on the blockchain and used in the systems and process described herein is notlimited to transactional data, but may also include other forms of datain other fields outside of financial environments. For example, data orrecords (e.g., patient records, DNA records, genomic records, and thelike) may be stored on the block chain and benefit from the presentinvention.

Block chain data or block data may also be stored on the block chain inaddition to the content data. Chain data includes data associated withcharacterization or identification of the block chain itself. Examplesof chain data may include data or information related to length of theblock chain, consensus execution, agreements/disagreements on the chain,health-check data, security-check data, performance information,encryption, regulatory compliance, undecided blocks of the chain, chainbranching, and the like and/or any other statistical or descriptiveinformation related to the block chain.

The data stored on the one or more block chains and the block chainsthemselves may have different permissions, requirements, qualities,characteristics, and the like associated with the data. Data may bestored on particular nodes, chains, and/or within particular regions ofthe block chain hierarchy, as described herein, having datacharacteristics that match the requirements called for by or assigned tothe data. Characteristics or requirements of the data may includecharacteristics or requirements associated with data privacy, security,immutability, energy usage or efficiency, storage, response time, andthe like. Privacy requirements may include requirements for limitingexposure of the data or information to certain entities or users, (e.g.,data stored within a permissioned block chain). Privacy of particulardata segments may be dependent on the criticality of the data. Forexample, PII may require different requirements in a block chain thanNPI. However, privacy, such as the privacy required by permissionedblock chains, is inherently at odds with security and immutabilityrequirements which rely on observability of the data and consensus ofmultiple parties (i.e., a large number of nodes) in a chain in order tovalidate and store a sequence of transactions in an unchangeablefashion. Observability of the data by the members of the chain is afundamental characteristic needed for “immutability of the record”which, in essence, is not privacy preserving if attempting to reducedata exposure to a large number of other members. Energy usage orefficiency requirements may include a required amount of computingresources (e.g., number of nodes, processing power, memory, and/orbandwidth) necessary for completing operations or actions (e.g.,consensus mechanisms, recording or broadcasting from the block chain, orthe like) with the data which may be balanced with the energy or powerrequired to complete said operations in a desired timeframe (i.e.,response time). It should be understood that the data requirements orcharacteristics as discussed herein should not be considered limiting,as the invention may extend to one or more other data requirements,functionalities, and characteristics.

In some embodiments, data from the regulated chain 602 is transferred orbroadcast to one or more of the regulating chains 604 while regulatorycontrol decisions, actions, other data, and the like may be transmittedback to the regulated block chain 602 by one or more of the regulatingchains 604. Regulatory control decisions and actions may includeproviding commands to the regulated chain, rewriting data on theregulated chain, overwriting an incorrect consensus determined by theregulated chain, or the like. In this way, an error may be removedbefore propagation of the error throughout the block chain network. Insome embodiments, a deactivated or removed chain may be reactivated orreintroduced into the block chain network upon correction of the error.In some embodiments, control decisions or actions may further includereporting the regulated chain to a centralized authority for theregulated chain to be modified.

The transfer of data between block chains and management of regulatoryrelationships within the system of the invention is managed by one ormore smart chains. Smart contracts, as described herein, are computerprocesses that facilitate, verify and/or enforce negotiation and/orperformance of a contract between parties. Smart contracts include logicthat emulates contractual clauses that are partially or fullyself-executing and/or self-enforcing. The smart contracts provideguidelines for transfer of data, regulation, and control of the chainswithin the system. The smart contracts may further define consensus(e.g., proof of work) and encryption mechanisms for the data stored inthe regulatory chains. In some embodiments, cross-chain smart contractsmay be configured to dynamically form one or more additional chains orrelationships between one or more nodes or chains within thearchitecture (e.g., regulatory hyperchains). In some embodiments, one ormore cross-chain smart contracts may control and enforce the movementand/or regulation of data between a plurality of block chains.

Referring now back to a portion of FIG. 6, in one embodiment of theinvention, a centralized approach to block chain regulation is taken,wherein one or more regulatory nodes 606 are added to each block chainto regulate each chain. Each of the individual regulatory nodes 606 mayreport directly back to one or more central regulatory authorities 608(e.g., Securities and Exchange Commission or the like). However, due tothe natural, continuous growth of a block chain environment, a purelycentralized approach may provide scalability issues for maintenance by acentralized regulating authority or entity as the number of chains andchain lengths both increase.

In another embodiment, as further illustrated in FIG. 6, orthogonal to acentralized approach relying on a centralized regulatory source, thepresent invention allows the block chain structures themselves tosimultaneously function as both regulated and regulatory chains for oneanother to form an interconnected network of decentralized, regulatoryoversight that recursively extends throughout the block chain structure600. The regulated chain 602 and the plurality of regulating chains 604work in unison and perform complimentary tasks required for regulationpurposes.

As depicted in FIG. 6, one or more nodes and/or chains may form aregulatory “hyperchain” (dashed line) which acts as a decentralizedregulatory system for monitoring and regulating data, complianceauditing, and health of a regulated chain. In a portion of theillustrated environment, the periphery, regulating chains 604 utilizethe collective nature of block chain communication to perform keyregulator and control functions for at least one regulated chain 602. Insome embodiments, a hierarchy of hyperchains may be formed, wherein thehierarchy of hyperchains allows for regulation of the plurality of blockchains within the block chain structure 600, wherein each chain mayparticipate as both a regulated and regulating chain creating adecentralized, self-regulating, recursive system environment. In someembodiments, the one or more regulating chains 604 track both contentdata, block chain data, chain health, statistics, characteristics, andthe like according to one or more regulatory smart contracts.

In some embodiments, the regulating chains 604 selected forparticipation in the regulatory hyperchain contain similarfunctionalities, data, transaction types, or other features as theregulated chain 602. For example, a collection of block chains forbanking transactions may be utilized in the regulatory hyperchain for aregulatory chain used for banking transactions.

The invention provides a technical solution to problems inherent to thetechnology surrounding centralized regulation for block chains, namely:issues of scalability, speed, and security. While novel and useful, dueto the nature of block chain growth, the centralized method ofregulatory control would inevitably become overwhelmed by long chainlengths and an expanding number of chains leading to decreasedperformance and delays in reporting, analysis, and regulatory control ofthe block chain. Further, centralized regulation provides a single pointof compromise for a hacking event or node failure which could seriouslyaffect or even irreparably damage the integrity of the chain's overallhealth. These concerns are further enhanced when the block chains of thepresent invention comprise one or more permissioned block chains,wherein there are few participants and a hacking event can create asignificant impact on the health of the block chain.

The system depends on the consensus reached by regulating chainsparticipating in the regulatory hyperchain to determine a validatedresult and an accurate report on the health of the main chain's data andagreement on data and regulatory actions to be performed. In someembodiments, wherein data privacy is critical (e.g., a permissionedblock chain), a chain may share non-privacy critical data related tocritical or private data (e.g., transaction data) on the chain such asgenerated meta-data, consensus history, data hashes, data slices,markers, signatures, identifiers, block chain data, other public ornon-privacy critical information, or the like in order to reachconsensus and validate the data. In some embodiments, if blocks on themain chain have been compromised (e.g., a hacking event, data lossevent, or the like), data history may be traced back using the datarecorded in the regulatory hyperchain to diagnose or identify the sourceof the issue. In some embodiments, data may be reconstructed using thedata records stored by the decentralized regulatory system.

In another embodiment of the invention as depicted by FIG. 6, thenetwork of regulatory chains may form a regulatory hierarchy ofhyperchains that may further lead back to a centralized regulatoryauthority (i.e., a hybrid centralized/decentralized system ofregulation). A plurality of regulatory nodes 606 may be distributed inthe regulating chains 604 neighboring the regulated chain 602. While theregulatory chains 604 form the decentralized hyperchain and communicatewith one another to reach consensus in a decentralized manner aspreviously discussed, one or more regulatory nodes 606 may be placed onsaid regulating chains 608 to ultimately report back to a centralregulatory authority 608 and regulate the plurality of chains within theblock chain structure 600. In this way, the central regulatory authority608 may receive reports on chain health and compliance and also transmitregulation instructions back to the regulatory nodes 606 for executionof one or more control decisions or actions. In some embodiments, theregulatory nodes 606 may be maintained and operated by the centralregulatory authority, agency, or financial institution.

In some embodiments, the system further comprises a controller orregulator node architecture and regulatory contract process that managesnot only content of the chains, but also health, privacy, security,energy efficiency, immutability and other characteristics. Thecontroller may further decide on changes required in the overall systemor individual components based on the overall characteristics andindividual characteristics of block chains, spiral chains, and/or nodes.In some embodiments, the controller may perform one or more of theprocesses, actions, or commands described herein.

FIG. 7A provides a high level process map illustrating theimplementation of a decentralized block chain regulation architecturefrom the perspective of one or more regulating chains 700, in accordancewith one embodiment of the present invention while FIG. 7B provides amore detailed flowchart of the same. As illustrated in block 702, theprocess 700 is initiated by the system first checking one or moreregulatory smart contracts (e.g., cross-chain smart contracts) toacquire regulatory requirements and characteristics for one or moreregulated chains or data within the chains (i.e., privacy, security,compliance, and the like requirements and characteristics for thedata/regulated chains as previously discussed). Based on the receivingdata requirements, the system utilizes the regulatory hyperchains toanalyze the regulatory data broadcast from the regulated chain.

In some embodiments, a plurality of smart contracts may be generated andused within the system to enforce different or unique regulatoryrequirements of the data or chains within the same group of chains. Forexample, a first smart contract can execute a regulation associated witha first requirement in a chain, while a second smart contract canexecute a regulation associated with a second requirement in the samechain.

As illustrated in block 704, each hyperchain reaches consensus for theregulatory requirements of the regulated chain. The one or morehyperchains may check and/or validate data, determine non-compliance ofthe regulated chain, determine invalid data or an invalid consensus, orthe like. In some embodiments, analysis by the regulatory hyperchaincomprises reaching consensus on the regulatory data of the regulatedchain separately from the regulated chain and comparing the results todetermine an error in the data. An error in the regulatory data mayindicate poor data health of the main chain as a result of, for example,incorrect consensus reached by the nodes of the main chain, acompromised node, an incorrectly recorded block, uncomplianttransactions or the like. In some embodiments, consensus may furtherrequire consensus to be reached among a plurality of hyperchains. Whileconsensus methods such as proof-of-work may be utilized by embodimentsof this invention, it should be understood that alternative consensusmechanisms may be employed by the system as well.

As illustrated in block 706, the system looks up actions or decisions tobe made as required by the smart contract for the regulatoryrequirements of the regulated chain. In some embodiments, the actionand/or decision may be locally resolvable by the hyperchain. In otherembodiments, the hyperchain may require feedback, instruction, orpermission from one or more additional governing hyperchains and/or acentral regulatory authority in order to determine and/or execute one ormore control decisions or actions as previously discussed.

As illustrated in block 708, the system transmits a required action tothe regulated chain. In response to identifying an error in theregulated chain, the regulatory hyperchain may take action to mend orquarantine the error. The system controls the regulated chain using theregulatory hyperchain based on identifying the error in the regulatorydata. In some embodiments, the regulatory hyperchain may providecommands to the regulated chain, rewrite data on the regulated chain,overwrite an incorrect consensus determined by the regulated chain, orthe like. In some embodiments, the regulatory hyperchain deactivates theregulated chain or removing the regulated chain from the block chainenvironment. In this way, an error may be removed before propagation ofthe error throughout the block chain network. In some embodiments, adeactivated or removed chain may be reactivated or reintroduced into theblock chain network upon correction of the error. In one particularexample, the system may determine that a chain reached consensus withtoo few nodes in the chain. In response to detection of the error inreaching consensus, a regulatory hyperchain may overwrite or evendeactivate the chain for not being in compliance with regulations.

As illustrated in block 710, the system may optionally further report toa regulatory authority (e.g., in a hybrid, centralized/decentralizedarchitecture). In some embodiments, the system may report on one or morecharacteristics of the regulated chain based on analyzing the databroadcasted by the regulated chain. Characteristics of the regulatedchain may comprise regulatory compliance data, data health, datasecurity, and the like associated with the regulated chain. Reports maybe provided to a maintaining entity of the system, a user, a regulatoryauthority, or the like. Finally, as illustrated in block 712, the systemmay receive instruction from the central regulatory authority to executeone or more actions on the regulated chain.

FIG. 8A provides a high level process map illustrating theimplementation of a decentralized block chain regulation architecturefrom the perspective of one or more regulated chains 800, in accordancewith one embodiment of the present invention while FIGS. 8B and 8Cprovide a detailed flowchart of the same. As illustrated in block 802,the process 800 is initiated by the system first analyzing andanonymizing data on the regulated block chains before being broadcast toregulating chains. For example, a data set containing personalidentifying information of a group of customers may have social securitynumbers and other NPI removed from the set before being published. Insome embodiments, the system may anonymize or encrypt content dataand/or chain data by generating or extracting meta-data, data hashes,data slices, markers, identifiers or the like associated with theregulated data.

As illustrated in block 804, based on the regulatory requirements of theregulated chain, the regulated chain broadcasts or shares data to theone or more regulating nodes, chains, hyperchains, and/or the like. Insome embodiments, wherein data privacy is critical (e.g., a permissionedblock chain), a chain may share non-privacy or non-critical data relatedto private or critical (e.g., transaction data) on the chain such asgenerated meta-data, consensus history, data hashes, data slices,markers, signatures, identifiers, block chain data, other public ornon-privacy critical information, or the like in order to reachconsensus and validate the data. In some embodiments, broadcasting ofthe data from the regulated chain may be governed or controlled bycross-chain smart contracts.

As illustrated in block 806, the regulated chain receives one or moreregulatory actions from one or more regulating nodes, chains,hyperchains, central regulatory authority, and/or the like as previouslydiscussed with respect to FIG. 7A, and finally, as illustrated in block808, one or more required regulatory actions may be performed on or bythe regulated chain. In some embodiments, the regulated chain mayperform the required actions.

As will be appreciated by one of ordinary skill in the art, the presentinvention may be embodied as an apparatus (including, for example, asystem, a machine, a device, a computer program product, and/or thelike), as a method (including, for example, a business process, acomputer-implemented process, and/or the like), or as any combination ofthe foregoing. Accordingly, embodiments of the present invention maytake the form of an entirely software embodiment (including firmware,resident software, micro-code, and the like), an entirely hardwareembodiment, or an embodiment combining software and hardware aspectsthat may generally be referred to herein as a “system.” Furthermore,embodiments of the present invention may take the form of a computerprogram product that includes a computer-readable storage medium havingcomputer-executable program code portions stored therein. As usedherein, a processor may be “configured to” perform a certain function ina variety of ways, including, for example, by having one or morespecial-purpose circuits perform the functions by executing one or morecomputer-executable program code portions embodied in acomputer-readable medium, and/or having one or more application-specificcircuits perform the function. As such, once the software and/orhardware of the claimed invention is implemented the computer device andapplication-specific circuits associated therewith are deemedspecialized computer devices capable of improving technology associatedwith the in authorization and instant integration of a new credit cardto digital wallets.

It will be understood that any suitable computer-readable medium may beutilized. The computer-readable medium may include, but is not limitedto, a non-transitory computer-readable medium, such as a tangibleelectronic, magnetic, optical, infrared, electromagnetic, and/orsemiconductor system, apparatus, and/or device. For example, in someembodiments, the non-transitory computer-readable medium includes atangible medium such as a portable computer diskette, a hard disk, arandom access memory (RAM), a read-only memory (ROM), an erasableprogrammable read-only memory (EPROM or Flash memory), a compact discread-only memory (CD-ROM), and/or some other tangible optical and/ormagnetic storage device. In other embodiments of the present invention,however, the computer-readable medium may be transitory, such as apropagation signal including computer-executable program code portionsembodied therein.

It will also be understood that one or more computer-executable programcode portions for carrying out the specialized operations of the presentinvention may be required on the specialized computer includeobject-oriented, scripted, and/or unscripted programming languages, suchas, for example, Java, Perl, Smalltalk, C++, SAS, SQL, Python, ObjectiveC, and/or the like. In some embodiments, the one or morecomputer-executable program code portions for carrying out operations ofembodiments of the present invention are written in conventionalprocedural programming languages, such as the “C” programming languagesand/or similar programming languages. The computer program code mayalternatively or additionally be written in one or more multi-paradigmprogramming languages, such as, for example, F#.

It will further be understood that some embodiments of the presentinvention are described herein with reference to flowchart illustrationsand/or block diagrams of systems, methods, and/or computer programproducts. It will be understood that each block included in theflowchart illustrations and/or block diagrams, and combinations ofblocks included in the flowchart illustrations and/or block diagrams,may be implemented by one or more computer-executable program codeportions. These one or more computer-executable program code portionsmay be provided to a processor of a special purpose computer for theauthorization and instant integration of credit cards to a digitalwallet, and/or some other programmable data processing apparatus inorder to produce a particular machine, such that the one or morecomputer-executable program code portions, which execute via theprocessor of the computer and/or other programmable data processingapparatus, create mechanisms for implementing the steps and/or functionsrepresented by the flowchart(s) and/or block diagram block(s).

It will also be understood that the one or more computer-executableprogram code portions may be stored in a transitory or non-transitorycomputer-readable medium (e.g., a memory, and the like) that can directa computer and/or other programmable data processing apparatus tofunction in a particular manner, such that the computer-executableprogram code portions stored in the computer-readable medium produce anarticle of manufacture, including instruction mechanisms which implementthe steps and/or functions specified in the flowchart(s) and/or blockdiagram block(s).

The one or more computer-executable program code portions may also beloaded onto a computer and/or other programmable data processingapparatus to cause a series of optional steps to be performed on thecomputer and/or other programmable apparatus. In some embodiments, thisproduces a computer-implemented process such that the one or morecomputer-executable program code portions which execute on the computerand/or other programmable apparatus provide operational steps toimplement the steps specified in the flowchart(s) and/or the functionsspecified in the block diagram block(s). Alternatively,computer-implemented steps may be combined with operator and/orhuman-implemented steps in order to carry out an embodiment of thepresent invention.

While certain exemplary embodiments have been described and shown in theaccompanying drawings, it is to be understood that such embodiments aremerely illustrative of, and not restrictive on, the broad invention, andthat this invention not be limited to the specific constructions andarrangements shown and described, since various other changes,combinations, omissions, modifications and substitutions, in addition tothose set forth in the above paragraphs, are possible. Those skilled inthe art will appreciate that various adaptations and modifications ofthe just described embodiments can be configured without departing fromthe scope and spirit of the invention. Therefore, it is to be understoodthat, within the scope of the appended claims, the invention may bepracticed other than as specifically described herein.

1-16. (canceled)
 17. A system for regulation and hierarchical control ofblock chain architecture, the system comprising: a plurality of nodesparticipating in a block chain network, wherein the block chain networkcomprises a plurality of block chains; and a controller for managingregulation of the plurality of block chains, the controller comprisingat least one memory device with computer-readable program code storedthereon, at least one communication device connected to a network, andat least one processing device, wherein the at least one processingdevice is configured to execute the computer-readable program code to:assign at least one regulatory node to each of the plurality of blockchains, wherein each of the at least one regulatory nodes regulates oneor more of data, processes, and health of the respective block chain towhich said at least one regulatory node is assigned and is incommunication with a central regulatory authority; monitor and collectregulatory data from each of the plurality of block chains using therespective at least one regulatory nodes assigned to each of theplurality of block chains; and transmit a report from each of the atleast one regulatory nodes to the central regulatory authority.
 18. Thesystem of claim 17, wherein each of the at least one regulatory nodesreceives regulation instructions from the central regulatory authority.19. The system of claim 18, wherein the regulation instructions compriseproviding an operation command to at least one regulated chain.
 20. Thesystem of claim 18, wherein the regulation instructions compriserewriting information on the at least one regulated chain.
 21. Thesystem of claim 18, wherein the regulation instructions compriseoverwriting a consensus of the at least one regulated chain.
 22. Thesystem of claim 18, wherein the regulation instructions comprisedeactivating or removing at least a portion of the at least oneregulated chain from the block chain network.
 23. The system of claim 22further comprising reactivating or reintroducing into the block chainnetwork a deactivated or removed chain upon correction of an error inthe deactivated or removed chain.
 24. The system of claim 18, whereinthe regulation instructions comprise reporting a regulated chain to acentralized authority for the regulated chain to be modified orpenalized.
 25. The system of claim 17, wherein a plurality of respectiveregulatory nodes are assigned to each of the plurality of block chains,wherein the plurality of respective regulatory nodes are each associatedwith a plurality of central regulatory authorities.
 26. A computerimplemented method for regulation and hierarchical control of blockchain architecture comprising a plurality of nodes participating in ablock chain network, wherein the block chain network comprises aplurality of block chains, said method comprising: assigning at leastone regulatory node to each of the plurality of block chains, whereineach of the at least one regulatory nodes is configured to regulate oneor more of data, processes, and health of the respective block chain towhich said at least one regulatory node is assigned and is incommunication with a central regulatory authority; monitoring andcollecting regulatory data from each of the plurality of block chainsusing the respective at least one regulatory nodes assigned to each ofthe plurality of block chains; and transmitting a report from each ofthe at least one regulatory nodes to the central regulatory authority.27. The method of claim 26 further comprising transmitting regulationinstructions from the central regulatory authority to each of the atleast one regulatory nodes.
 28. The method of claim 27, wherein theregulation instructions comprise providing an operation command to atleast one regulated chain.
 29. The method of claim 27, wherein theregulation instructions comprise rewriting information on the at leastone regulated chain.
 30. The method of claim 27, wherein the regulationinstructions comprise overwriting a consensus of the at least oneregulated chain.
 31. The method of claim 27, wherein the regulationinstructions comprise deactivating or removing at least a portion of theat least one regulated chain from the block chain network.
 32. Themethod of claim 31 further comprising reactivating or reintroducing intothe block chain network a deactivated or removed chain upon correctionof an error in the deactivated or removed chain.
 33. The method of claim27, wherein the regulation instructions comprise reporting a regulatedchain to a centralized authority for the regulated chain to be modifiedor penalized.
 34. A computer program product for regulation andhierarchical control of block chain architecture comprising a pluralityof nodes participating in a block chain network, the computer programproduct comprising at least one non-transitory computer-readable mediumhaving computer-readable program code portions embodied therein, thecomputer-readable program code portions comprising: an executableportion configured for assigning at least one regulatory node to each ofthe plurality of block chains, wherein each of the at least oneregulatory nodes is configured to regulate one or more of data,processes, and health of the respective block chain to which said atleast one regulatory node is assigned and is in communication with acentral regulatory authority; an executable portion configured formonitoring and collecting regulatory data from each of the plurality ofblock chains using the respective at least one regulatory nodes assignedto each of the plurality of block chains; and an executable portionconfigured for transmitting a report from each of the at least oneregulatory nodes to the central regulatory authority.
 35. The computerprogram product of claim 34 further comprising an executable portionconfigured for transmitting regulation instructions from the centralregulatory authority to each of the at least one regulatory nodes. 36.The computer program product of claim 35 wherein the regulationinstructions comprises at least one of: providing an operation commandto at least one regulated chain, rewriting information on the at leastone regulated chain, overwriting a consensus of the at least oneregulated chain, and/or deactivating or removing at least a portion ofthe at least one regulated chain from the block chain network.